10 November 2009
Hi Kanika, In Individual financial statements Interim dividend paid will appear on Dr. side of P/L appropriation A/c whereas the same will appear as Dividend received in holding co's books. Inter group transactions(dividend paid by the s Ltd. and received by H Ltd.) will be eliminated in CFS. and that paid to outsider will be shown on Dr. side of Con. P/L appropriation A/c. In Consolidated Balance Sheet Final dividend payable by the holding co. will appear on the liability side of the balance sheet as provisions under the head Current liabilities and provisions whereas that of the s Ltd. will be split into two parts - payable to H Ltd and Payable to minority shareholders. payable to H Ltd in the books of S Ltd. will appear as receivale from S Ltd. in the books of H Ltd. And both will be eliminated in consolidated Balance Sheet being inter group transactions whereas that payable to minority shareholders will be added to minority interest.
CAclubindia
